Can you unpack the $25 million net benefit from CELSIUS versus Alani inventory movements? Will Alani Nu's inventory levels remain elevated, implying a later unwind, or will under-shipment occur faster?

The $25 million net benefit in Q4 was due to adjusting CELSIUS inventory and loading additional Alani, which was an opportunistic move rather than a pull-forward. The company aims to tighten the peaks and valleys of data volatility, especially for the portfolio. Alani's strong initial triple-digit growth and rapid depletion of LTOs suggest the inventory load-in was well-utilized. “I do think we saw opportunity to load in even more of Alani with the ability of the Pepsi distribution system and really how quickly they were able to get Alani out from an ACV perspective across the shelf. So I think there was, I would call that more of an opportunity than a load-in, that we took advantage of.”

Can you discuss the impact of the Midwest premium on gross margins? What is the phasing of gross margins this year, and how should they evolve beyond 2026?

The target is to return to low 50s gross margins by the back half of 2026, with potential to reach mid-50s in the near term (next handful of years). Drivers include aligning COGS for Alani and Rockstar with CELSIUS (Alani by end of Q1, Rockstar by end of Q2), leveraging the orbit model and freight structure, and favorable product mix. One-time Q4 integration costs will not recur. The outlook factors in the Midwest premium and tariffs, with potential for quicker improvement if tariffs subside. “But really, the goal is, once we get through that first half of the year, to be in good shape to get into that low 50s as you look at the back half of the year. Those do also factor in the Midwest premium that has picked up as well as tariffs.”

How does the 3-brand portfolio approach impact SKU trimming and LTO cadence? How will velocity be managed with increased shelf space, and what are retailers saying about the competitive set? Also, how predictable are sales with Pepsi's view, and how will margins evolve from a promotional perspective?

The portfolio allows maximizing value by optimizing SKUs for channels and regions, focusing on fastest-turning products. Innovation, including LTOs, is crucial for trial and building daily consumption, especially targeting female consumers and social occasions. Velocity is a key KPI, and while new distribution may initially lower velocity, the goal is to build it over time. Revenue Growth Management (RGM) is a big component to maximize value and compete at the highest level, with Pepsi's partnership providing distribution confidence and breadth. “When you look at the SKU prioritization, that's the beauty of a portfolio. We're able to really maximize the value of the portfolio now with CELSIUS, Alani and Rockstar, making sure we're maximizing the SKUs really for the channel and also for a regional basis.”

CELH

Celsius Holdings (CELH) Q4 FY25 earnings call: guidance and Q&A

Earnings call· Dec 2025 (Q4 FY25)· Consumer Staples· Feb 26, 2026

Source: earnings call transcript

Executive summary

Celsius Holdings Q4 FY25 — Record Revenue and Portfolio Integration Progress

Celsius Holdings delivered record full-year revenue, driven by strong performance from Alani Nu and the continued execution of its portfolio strategy. The company is actively integrating Alani Nu and Rockstar Energy into the PepsiCo system, which has created some short-term timing impacts on reported sales and margins. Management remains focused on operational discipline, international expansion, and innovation to drive sustainable, profitable growth, with significant shelf space gains anticipated for both CELSIUS and Alani Nu in 2026.

Highlights

Achieved full year record revenue of $2.5 billion.
Alani Nu recorded record net sales of $370 million in Q4, with pro forma growth of 136% year-over-year.
The combined portfolio represents approximately 1/5 of the U.S. energy market in tracked channels for the full year.
CELSIUS brand secured roughly 17% additional shelf space for 2026.
Alani Nu secured over 100% (triple-digit) additional shelf space for 2026.

Concerns

Q4 GAAP sales for brand CELSIUS showed a 7.7% decline due to timing activities related to the Alani load-in.
Gross profit margin in Q4 was 47.4%, down from 50.2% in the prior year, reflecting dilution from Rockstar Energy, higher integration costs, and tariffs.
Rockstar Energy integration is still ongoing, with completion expected in the first half of 2026.

Guidance & targets

Category	Target	Timeline	Confidence
Alani Nu integration completion	by the end of the first quarter of 2026 medium materiality	Q1 · FY26	High
Rockstar Energy integration completion	in the first half of 2026 medium materiality	H1 FY26	High
Rockstar Energy business stabilization and growth	stabilize the business and move it back into growth over the next handful of years medium materiality	next handful of years	Medium
Gross margin	low 50s high materiality	back half of 2026 · FY26	Medium
Gross margin	mid-50s high materiality	near-term target, into the next handful of years	Low

Segment performance

Segment	Revenue	YoY	QoQ	Margin
CELSIUS Underlying GAAP sales showed a decline due to timing activities related to the Alani load-in and inventory movements within the Pepsi system, despite healthy scanner data. Scanner data growth: 12.8% (Q4 FY25)Additional shelf space: 17% (2026)	—	-7.7%	—	—
CELSIUS Full year net sales for brand CELSIUS.	$1.46B	7.5%	—	—
Alani Nu Achieved record net sales in Q4, benefiting from significant customer demand, increased distribution points, and increased orders during the transition into the PepsiCo system. Contribution to net sales (9 months): $1BAdditional shelf space: triple-digit (2026)	$370M	136% (pro forma)	—	—
Rockstar Energy Sales recorded within net sales, with an additional amount recorded in other income due to accounting treatment during integration. U.S. portion expected to fully transition to finished goods model in Q1 FY26, Canadian portion in H1 FY26. Other income: $6M (Q4 FY25)	$45M	—	—	—
Rockstar Energy Full year net sales and other income. Other income: $13M (FY25)	$56M	—	—	—

Product announcements

Product	Type	Timeline
Fizz-Free line	launch	Q1 2026
Cherry Bomb	launch	Q4 2025
Lime Slush	launch	Q1 2026

Risks & headwinds

Rockstar Energy integration impact on gross margin Q4 FY25, expected to moderate as integration completes in H1 2026

Dilution from Rockstar Energy was a factor in Q4 FY25 gross margin decline from 50.2% to 47.4%.

Mitigation:Integration completion, consistent execution, more focused SKU set, and improving margin structure over time.

Higher cost of product related to integration and tariffs Q4 FY25, expected to moderate as integration completes in H1 2026

Contributed to Q4 FY25 gross margin decline from 50.2% to 47.4%.

Mitigation:Operational efficiencies, revenue growth management, and integration of Alani and Rockstar into the orbit model to gain leverage and scale.

Midwest premium and tariffs 2026

Factored into gross margin expectations for 2026.

Mitigation:Ongoing initiatives to improve margins, with potential for quicker improvement if tariffs subside.

Quarter-to-quarter variability in reported results Q1-Q2 FY26

Reported results can vary when shipments, inventory positioning, and promotions are not perfectly aligned with consumer takeaway.

Mitigation:Impacts expected to moderate as integration milestones are completed in H1 2026; tightening alignment between shipments and underlying takeaway; managing the business holistically.

What to watch in Q1 FY26

Alani Nu integration completion

end of Q1 FY26

Current Substantially complete on U.S. DSD transition as of year-end 2025

Target Completed

Why it matters

Successful integration is key to realizing synergies and optimizing distribution within the PepsiCo system, impacting future growth and profitability.

We continue to expect the Alani implementation and integration to be completed by the end of the first quarter of 2026.

Find out whether CELH delivers this. Inve re-checks your case every morning.

Q&A highlights

When will the benefits from spring shelf space resets materialize, especially for Alani Nu? Will Q1 reported sales for CELSIUS improve given the Q4 gap between consumption and reported sales?

Shelf space gains are expected to materialize through the end of spring, with the biggest gains for Alani Nu in convenience. While there can be timing differences between consumption and reported revenue, the company is committed to tightening these gaps. CELSIUS orders in early 2026 are aligning more closely with tracked data, but quarter-to-quarter variability can still occur due to LTOs and distribution expansion.

“Historically, we've seen them really materialize through and kind of finalize right around the end of spring, has historically been when the final resets take place as everyone is gearing up, as we call, the beverage summer selling season.”

asked by Filippo Falorni · answered by John Fieldly

2 min read 6 chapters

Detailed narrative

Portfolio Strategy and Market Position

Celsius Holdings is building a modern energy portfolio with CELSIUS, Alani Nu, and Rockstar Energy, which collectively represent approximately one-fifth of the U.S. energy market in tracked channels. The company manages each brand to broaden its reach, with two brands now exceeding $1 billion in sales.

The strategy focuses on precision execution, innovation, and activating demand to strengthen the core business and ensure sustainable, profitable growth.

Integration Progress for Alani Nu and Rockstar Energy

The integration of Alani Nu into the PepsiCo system is substantially complete for U.S. DSD as of year-end 2025, with full implementation expected by the end of Q1 2026. Rockstar Energy's integration is also on track for completion in the first half of 2026.

These integrations are building repeatable processes and refining a playbook for managing complexity across the growing portfolio, with a focus on consistent execution, SKU optimization, and improving margin structure.

International Expansion Initiatives

International markets represent a significant long-term growth opportunity, with Celsius currently present in approximately 10 markets. The company's approach is intentional, prioritizing focused market selection, clear entry plans, and strong local partnerships. Garrett Quigley has been appointed President of International to build a dedicated sales and marketing organization, leveraging global consumer trends towards zero sugar, functional energy.

Marketing and Innovation Capabilities

Celsius is enhancing its marketing capabilities with the creation of a new in-house brand studio. This full-service agency aims to drive brand growth with speed and consistency across all consumer touchpoints, from packaging to digital content. Innovation remains central, with the national availability of the Fizz-Free line and a disciplined approach to Limited Time Offers (LTOs) like Cherry Bomb and Lime Slush, designed to expand the funnel, drive trial, and reinforce the core portfolio.

Revenue Growth Management and Operational Discipline

The company is adopting a portfolio approach to revenue growth management (RGM), focusing on precision and ROI discipline rather than broad-based price increases. This involves shaping the business through mix, price pack architecture by channel, pack strategy, and disciplined promotion.

The goal is to improve both growth and quality of earnings, leading to tighter, more intentional, and measurable promotional activity, supported by aligned planning with PepsiCo.

Shelf Space Gains and Velocity Outlook

Celsius expects significant shelf space gains in 2026, with CELSIUS securing 17% additional space and Alani Nu achieving triple-digit space gains, particularly in convenience channels. These gains are driven by retailers expanding energy category space, often optimizing beer or juice cooler sections.

While initial velocity in new distribution points for Alani Nu may be lower, the company aims to build velocity over time through marketing, innovation, and consistent consumer purchasing.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.